Alliance Magnesium to Buy Magnola Mining

Quebec-based Alliance Magnesium has acquired all the shares of Magnola Metallurgy Inc. and Magnola Mining Inc., giving it full ownership of Magnola’s industrial and mining sites in Danville, Quebec. The site includes facilities and equipment from the former magnesium plant, whose value was recently estimated by an independent appraiser at more than C$85 million. The property also contains a valuable residue deposit estimated at more than 100 million metric tons (mt) of serpentine rock, bearing approximately 25% magnesium.

“It took five years of work, investment and achievement to reach this crucial and defining milestone in AMI’s development,” said Dr. Joël Fournier, CEO, Alliance Magnesium. “The transaction marks the company’s clear intention to play a dominant role in global magnesium production, and confirms its position as one of the largest manufacturing projects in Canada.”

The Magnola acquisition provides Alliance with the infrastructure to construct and operate a 50,000-mt magnesium plant by 2021. After achieving a successful pilot plant, Alliance is now preparing for its commercial demonstration of phase I, which requires an investment of more than C$100 million. A privately owned Canadian company Alliance has developed innovative technology that gives it a cleaner and less expensive approach than those currently used worldwide by magnesium producers, according to the company.